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Hotstar targets Rs 150 crore plus revenue from IPL 2017 streaming
MUMBAI: Is video on demand streaming service Hotstar cooking up a good revenue platter this IPL 10 season? Well, if some media reports are to be believed, then, it is. Anywhere between Rs 150-200 crore is what it is likely to serve onto the Star India top line. The figure for IPL was a much lower estimated Rs 65 crore.
The Novi Digital-owned service yesterday announced the on-boarding of Chinese mobile maker Vivo and auto major Maruti Suzuki as presenting sponsors for Vivo IPL 2017. The sticker price has not been specified. All that the release states is that the sponsorships are “believed to be sizeable investments from companies of a scale that has not been seen in the Indian digital market to date and indicate their belief in Hotstar’s promise of delivering the largest global sporting event on digital this summer.”
Media reports have speculated that the figure each is anteing up is Rs 20 crore.
According to Hotstar, advertisers and media agencies are signing fatter cheques because of the fact there has been a meaningful shift from television to digital — especially, as far as cricket viewing is concerned. The release states that “the most recent India vs England ODI series saw Hotstar’s reach challenging that of television consistently. The reach hit 120 per cent of television in cities with more than a million in population and 147 per cent reach in the largest six cities in India (M15+, NCCS AB). At the same time, the platform has seen new records established for digital with the short format cricket matches regularly exceeding 20 million in viewership.”
Hotstar CEO Ajit Mohan is quite confident that the pioneering app is going to be the primary screen for this IPL season considering the 130 million viewers who are streaming video nationally.
“Marketers are recognizing that these are audiences that are TV light or not present on television at all,” he points out. “We are reinventing the experience of cricket on a mobile and India is changing the way it watches its favourite sport.” Mohan told the media that the OTT player crossed had 200 million downloads by end February 2017. This is against the 50 million downloads, Star India CEO Uday Shankar had announced during the FICCI Frames inaugural keynote in March 2016.
The streaming service’s contract with the BCCI is slated to end this year as it had paid Rs 302.2 crore to acquire the global internet and mobile rights three years ago.
Vivo India CMO Vivek Zhang says he took the decision to partner with Hotstar as it appeals to the youth and enjoys tremendous brand recall. “Its desire to constantly invest on innovative technology which is in line with Vivo’s marketing objectives made it a preferred choice for Vivo We are truly excited about the delightful cricket experience that the platform is driving and were indeed keen to be a part of this drive,” he stated
Maruti Suzuki marketing head Sanjeev Handa acknowledged that an increasing number of the auto firm’s target customer is engaging with the company’s products on digital. According to him, almost 50 per cent of users are researching cars online and hence a diffusion of the purchase cycle is taking place here. “Hence, our approach is integrating offline and online, (it is a ground sponsor of this year’s IPL),” points out Handa.
“We wanted to embody the spirit of Play Glamourous for Vitara Brezza across the markets, and found a perfect fit by reaching out to the audiences via their closest screens, i.e. mobiles. An average user is spending over 150 mins each day on mobile. Our tie-up as co-presenting sponsor on Hotstar will give us the mileage and the engagement with the most glamourous sport in the nation!”
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Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
